Uttara Bank

Daffodil International University
Institutional Repository
Business Administration Project Report of MBA
2018-03-03
Financial Performance Analysis Of

Uttara Bank Limited
RIAJUL ISLAM, MD.

http://hdl.handle.net/20.500.11948/2361
Downloaded from http://dspace.library.daffodilvarsity.edu.bd, Copyright Daffodil International University Library
Internship Report
On
Financial Performance Analysis
Of
Uttara Bank Limited
Prepared By:
MD. RIAJUL ISLAM
ID: 131-14-1029
Program: MBA (Major in Finance)
UTTARA BANK LIMITED
Date of Submission: 18th September, 2014
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© Daffodil International University
Internship Report
On
Financial Performance Analysis
Of
Uttara Bank Limited
Supervised By:
MR. MAHBUB PARVEZ
Assistant Professor
Faculty of Business and Economics
Submitted By:
MD. RIAJUL ISLAM
ID: 131-14-1029
Program: MBA (Major in Finance)
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Letter of Transmittal
18th September, 2014
Mr. Mahbub Parvez

Subject: Submission of Internship Report on “Financial Performance Analysis of Uttara

Bank Ltd’’.
Dear Sir;
I have the pleasure to submit the internship report titled “Financial Performance Analysis of
Uttara Bank Limited” as partial requirement to complete the program under MBA
curriculum.
I would like to thank you for approving this topic. The study has given me the opportunity to
get a deeper insight and use my theoretical knowledge in practical world. This is to inform
you that I have successfully completed my internship at Uttara Bank Ltd. I sincerely hope
that my work will come up to the level of your expectation.
The study focuses upon very relevant factors. I have provided some implementable
recommendation.
Finally, thank you for your supportive thought and kind consideration for formulating an idea
and developing the structure of the paper. I would try my best and shall be obliged to provide
you with any clarification regarding the report.
Sincerely Yours,
Md. Riajul Islam

ID: 131-14-1029
MBA (Major in finance)
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Certificate of Approval
This is to certify that, Md. Riajul Islam, ID: 131-14-1029, a student of Master of Business
Administration (MBA), Daffodil International University, has been completed the internship
program at Awlad Hossain Market Branch of Uttar Bank Limited, Dhaka successfully with
excellent performance under my supervision.
Mahbub Parvez
Assistant Professor
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ACKNOWLEDGEMENT
At first, I must show my gratitude to Almighty Allah for giving me energy, ability &
capabilities for preparing this report.
I would like to thank my reverent teacher Mr. Mahbub Parvez, Assistant Professor of
Daffodil International University to undertake this study. His continuous assistance,
guidance, advice give me unending inspiration and strength to complete the study. I am also
grateful to my colleagues for their sincerest suggestion.
I would convey my sincere gratitude to and all Uttara Bank’s Executives and Officers for
their support and help. I regret that it is not possible to name all of them. Thanks are also due
to workers, staffs and officers who spent many of their valuable times to discuss with me.
Particularly I am thankful to all officers of Uttara bank, Awlad Hossain Market Branch for
their valuable support and encouraging thought during the whole period of this study.
Finally, I am very much appreciative to almighty Allah again.
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EXECUTIVE SUMMARY
From the inception of the civilization the banking sector dominates the economic
development of a country by mobilizing the saving from the general people and channeling
those saving for investment and thus economic development and growth. To satisfy the
demand as well as to improve the commercial banking service in our country, Uttara Bank
Ltd. a scheduled bank, was incorporated to initiate its operation with the aim to play the vital
role on the socio-economic development of the country.
At present Uttara Bank Ltd. (UBL) is one of the most top level private sector banks in our
country in terms of quality services to the customers & value addition for the shareholders. It
has given a successful year (2008) in terms of profit & turnover. The Bank solidified its
position as one of the most successful financial institutions & maintained satisfactory growth
across many of its business lines. The bank was able to make a net profit after tax of Tk. 798
million indicating a growth of 88.31% over the last year. This indicates that Uttara Bank Ltd.
is ruining ahead of the peak.
I was assigned to UBL for the purpose with an aim of discovering the intricacies of a profit
oriented financial institution. By the several analytical analyses I have studied “financial
performance” of the Uttara Bank Ltd. While preparing this report it has been tried to reveal
the insights of the current financial position of the bank. Simultaneously efforts have been
made to provide an in depth analysis on the factors that affect the bank’s financial
performance in the light of the theoretical aspects. In this report most of the information is
secondary and I collected the information by a publication of the bank. The report also
focuses on the performance in risk management at different area of the bank and SWOT
analysis to finding prospect of the bank. On the other hand, in this report make a comparative
analysis with others leading banks to find out the financial performance of the bank. Finally
few recommendations and suggestions were also prescribed based on the observation and
findings.
Analysis on the findings is basically done to sort out the major aspects of the “bank fund
management” and to draw some significant inferences. Utmost care has been given to explain
all necessary aspects related to the subject matter for easier and quick understanding of the
report.
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Table of Contents
DESCRIPTION PAGE NO
Letter of Transmittal iii
Certificate of Approval iv
Acknowledgement v
Executive Summary vi
1.1 Introduction 01
1.2 Background of the study 01
CHAPTER - 01 1.3 Objective of the study 02
1.4 Methodology of the study 03
ORGANIZATION PART
2.1 Overview of the Banking Sector in Bangladesh 06
2.2 Background of Uttara Bank Ltd. 08
2.3 Business Philosophy of Uttar Bank Ltd 09
2.4 Vision, Mission and Objectives of UBL 09
2.5.1 Hierarchy Of position 10
2.6 Different Wings of UBL 11
CHAPTER - 02
2.7 Business Network of UBL 13
2.8 Core Business Units of UBL 13
2.10 Product and Services of UBL 16
2.11 Deposit Products 17
2.12 Loan Products 20
2.13 SWOT Analysis 23
FINANCIAL PERFORMANCE ANALYSIS
3.1 Introduction 25
3.2 Deposits 25
3.4 Loans and Advances 27
CHAPTER -03 3.5 Sector wise Loans & Advances 28
3.6 Geographic Locations Wise Loans & Advances 29
3.7 Foreign Exchange Business 30
3.9 Net Profit (before tax
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3.10 Income – Expenses – Profit: 33
3.11 Total Assets 33
3.12 Market value per share 34
4.1 Introduction of Ratio Analysis 36

4.2 Operating income ratio 36
4.3 Net income ratio (before tax) 37
4.4 Return on assets ratio (ROA) 37
4.5 Return on equity (ROE) 38
4.6 Dividend per share 39
4.7 Earnings per share 39
4.8 Capital adequacy ratio 40
4.9 Net Interest Margin Ratio 41
4.10 Debt to total assets ratio 41
4.11 Debt-equity Ratio 42
Comparative Analysis
5.1 Introduction 44
5.4 Deposit 45
5.5 Credit Creation 46
5.6 Import Businesses 46
5.7 Export Businesses 47
5.8 Net profit after tax 48
5.9 Profit Growths (%) 49
5.10 Capital Adequacy Ratio 49
5.11 Earnings per Share 50
5.12 Operating Efficiency (I/E) 51
5.13 Return on Assets (ROA) 51
5.14 Return on Equity (ROE) 52
5.15 Deposit Advance Ratio 53
5.16 Classified of total loans 53
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FINDINGS, RECOMMENDATION & CONCLUSION
6.1 Findings 55
6.2 Reco mmendat io n 56
CHAPTER - 04
6.3 Conclusion 57
Bibliography 57
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1.1 INTRODUCTION
Generally by the word “Bank” we can easily understand that the financial institution deals
with money. But there are different types of banks like; Central Banks, Commercial Banks,
Savings Banks, Investment Banks, Industrial Banks, Cooperative Banks etc. But when use
the term “Bank” without any prefix, or qualification it refers to the „commercial banks‟.
Commercial banks are the primary contributor to the economy of a country. So we can say
commercial banks are a profit making institution that holds the deposit of the individuals &
business in checking various accounts like current, savings account and then uses these funds
to make loans. For these, people and government are very much dependent on these banks as
the financial intermediary. As banks are profit-earning concern; they collect deposit at the
lowest possible cost and provide loans and advances at higher possible cost. The differences
between two are the profit for the bank.
Banking sector is expanding its hand in different events every day. At the same time the
banking process is becoming faster, easier and the banking arena becoming wider. As the
demand for better service increases day by day, they are coming with different innovative
ideas and products. In order to survive in the competitive field of the banking sector, all
banking organization are looking for better service opportunities to provide their fellow
clients. As a result, it has become essential for every person to have some idea on the bank
and banking procedure.
Internship program is very essential for every student, especially for the students of business
administration, which helps them to know real life situation. For this reason a student makes
the paper at the last stage of the MBA degree, to launch a career with some practical
experience. To fulfill that requirement I have selected the study topic “Financial Performance
of Uttara Bank Ltd.”.
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1.2 BACKGROUND OF THE STUDY
Banking sector is spending its hand in different financial event every day. At the same time
the banking process is becoming faster, easier and the banking arena is becoming wider. As
the demand for better service increase day by day, they are coming with different innovative
ideas & products. In order to survive in the competitive field of the banking sector, all
banking organization are looking for better service opportunities to provide their fellow
clients. As a result, it has become essential for every person to have some idea on the bank
and banking procedure.
1.3 OBJECTIVE OF THE STUDY

The main objective of the report is to analyze the financial performance of Uttara Bank
Limited; to identify its position which includes the following specific objectives:

 To identify and assess the present financial performance of Uttara Bank Limited.

 To evaluate the performance of the bank through ratio analysis.

 To compare the financial situation of Uttara Bank Limited with the two other banks-
Brac Bank Limited and City Bank Limited.

 To identify the findings and raise possible recommendations for improving the
performance of Uttara Bank Limited.
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1.4 METHODOLOGY OF THE STUDY
The following methodology has been followed to come to a successful conclusion.
Sources of Information & Data

In order to make the Report more meaningful and presentable, two sources of data and
information have been used widely.
SECONDARY
PRIMARY DATA DATA
Both primary and secondary data sources were used to generate the report
The “Primary Sources” are as follows –

 Clients
 Officials
 Supervisor
 Observing various organizational procedures
 Relevant file study as provided by the officers concerned
 Unpublished information through interviews
The “Secondary Sources” of data and information are –

 Annual Report of UBL
 Different text book and journals
 Various reports and articles related to study
 Some of my course elements as related to this report
 Web base support from the internet
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Method of data collection:
For the “Financial Performance Analysis of Uttara Bank Limited” I mainly used Secondary
data. Besides this I also collect some information by taking expert opinion from the officers
and direct observation while I doing the internship program at the bank.
Method of data analysis:
Different graph and charts has been used to analyze the data. And some ratios and different
statistical measure has also been used where necessary.
1.5 LIMITATION OF THE STUDY
Observing and analyzing the broad performance of a bank and one of its branches are not that
easy. Moreover due to obvious reasons of scrutiny and confidentiality, the bank personnel
usually don‟t want to disclose all the statistical information about their organization.
However the some of the limitations I have face while preparing this Report are listed as
follows:

 Inadequate Data: Lack of available information about the business operations of
Uttar Bank Ltd. Because of the unwillingness of the busy key persons, necessary data
collection became hard. The employees are extremely busy to perform their duty.

 Lack of Record: Large-scale research was not possible due to constrain and
restrictions posed by the organization. Unavailability of sufficient written documents
as required making a comprehensive study. In many cases up-to-date information was
not available.

 Lack of experiences: Lack of experiences has acted as constraints in the way of
meticulous exploration on the topic. Being a member of the organization; it was not
possible on my part to express some of the sensitive issues. Lack of adequate
knowledge about export and import business of any organization.
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ORGANIZATIONAL PART
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2.1 Overview of the Banking Sector in Bangladesh
Whoever, being an individual firm, company or corporation generally deals in the business of
money and credit is called bank. In our country, any institution, which accepts, for the
purpose of lending or investment deposits of money from public, repayable on demand or
otherwise, and with transferable by checks draft order and otherwise can be termed as a bank.
The purpose of banking is to ensure transfer of money from surplus unit to deficit units. Bank
in all countries work as the depository of money. The owners look for safety and amount of
interest for their deposits with Banks. Entrepreneurs try to obtain money from the banks as
working capital and for long-term investment. These entrepreneurs welcome effective and
forward-looking advice for investment. Banking sector thus owe a great to the deposit holders
on the hand and the entrepreneurs on the other. They are expected to play the role of friend,
philosopher, and guide for the deposit holders and the entrepreneurs.
Since liberation, Bangladesh passed through fragile phases of development in the banking
sector. The nationalization of banks in the post liberation period was intended to safe the
institutions and the interest of the depositors. Those handling the banking sector have borne
the burden of putting banks on reliable footings. Despite all that was done, some elements of
irregularities appeared. With the assertion of the role of the Central bank, The Bangladesh
bank started adopting measures for putting banking institutions on right track. Yet the
performance of public sector management of banks left some negative effects in the money
market in particular and the economy in general. The agility among the borrowers
manipulates the banking sector as a whole. In effect, a default culture appeared on the scene.
The opening of PRIVATE and FOREIGN participants to the banking sector was intended to
obtain desirable results from banking. The authorization of private banks was designed to
create competition among the banks and competition in the form of efficiency with and the
productivity in enterprises funded by banks. Unfortunately, for the people, at large banking
sector is yet to obtain the credit for efficiency, credibility, and growth.
Banking sector has a vital role to play in the economic activities and development of any
country. This sector is much more important in a developing country like Bangladesh. The
whole scenario of the economy of a country can be ascertained by examining the condition of
the banking sector. In Bangladesh, the banking sector dominates the financial sector and
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macroeconomic management largely depends on the performance of the banking sector.
Banking grew primarily in the public sector with main emphasis on restructuring of the
financial system and development needs of the war-torn economy with gradual liberalization
in subsequent years. It was increasingly felt that banks should be allowed in the private sector
for giving a fillip to development process on the basis of private initiative. In the 80‟s for the
first time a number of banks in the private sector were allowed. Subsequently in the mid 90‟s
some more banks in private sector also commenced operations. Finally, in 1999, 3 rd
generation of private sector banks was given permission to operate. As a result while up to
80‟s public sector banks dominated financial sector, banks in the private sector were given
increased responsibility with the passage of time.
2.2 Background of Uttara Bank Ltd.
The emergence of Uttara Bank Ltd. in the private sector is an important event in the banking
industry of Bangladesh. Uttara Bank Ltd. started its business as a public limited company on
August 8, 1992 with the primary objectives to carry on all kinds of banking business in and
outside of Bangladesh and also with a view to safeguard the interest of the depositors of
erstwhile BCCI (Bank of Credit and Commerce International (Overseas)) under the
Reconstruction Scheme, 1992, framed by Bangladesh Bank.
In 1991, when BCCI had collapsed internationally, the operation of this bank had been closed
Bangladesh. After a long discussion with the BCCI employees and taking into consideration
the depositors‟ interest, Bangladesh Bank then gave permission to form a bank named Uttara
Bank Ltd. which would take over all the assets, cash and liabilities of erstwhile BCCI in
Bangladesh, with effect from 16th August 1992. So, it can be said that UBL is a successor of
BCCI.
UBL started its business as a scheduled bank with only four branches, which included
Principal Branch, Dhaka; Motijheel Branch, Dhaka; Agrabad Branch, Chittagong and Khulna
Branch. UBL started its business with a motto to grow as a leader in the banking arena of
Bangladesh through better counseling and efficient service to clients. UBL resumed its
operational activities initially with an authorized capital of Tk. 1000 million, divided into 10
million shares of Tk. 100 each and paid up capital of Tk. 310 million. The initial shareholders
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were the NCBs, various govt. agencies, and some of the depositors who had agreed to accept
shares in the new bank in lieu of their deposits. The first Board of Directors of UBL
constituted under govt. supervision consisted of 7 directors from various business and
professions. Uttara Bank Ltd. was under govt. control until the end of 2000 and therefore,
there were lots of deficiencies in the Bank‟s management. In 2001, the board of directors
brought in new professional management from various foreign banks who have been trying to
modernize the bank ever since.
Uttara Bank Ltd. started with Paid-up Capital stood at Tk. 828 million but the authorized
capital remained unchanged at Tk. 1000 million. The general public held 83.32% of its shares
while institutional investors held the rest 16.58%. At present, UBL is one of the fastest
growing commercial banks in the country & the largest capital based bank in Bangladesh. It
has 25 branches scattered all over the major cities of the country in major business areas.
2.3 Business Philosophy of Uttar Bank Ltd

The philosophy of UBL is to develop the Bank into ideal and unique banks. The sponsor
perception is that UBL should be quite different from other product and managed commercial
banks operating in Bangladesh. UBL to grow as a industry lieder rather than a follower. The
leadership will be in the area of service as being made to add new dimension so that clients
can get “Additional” in the services to commensurate with the needs and requirements of the
country‟s growth and developing economy.
Nevertheless, UBL is a commercial bank in the private sector. It is therefore next world seek
lair return on owner‟s equity as its one of the main goal. This purpose sought to be achieved
by rendering maximum possible satisfaction to its client‟s quick and efficient services.
Therefore, quality service to the clients is another goal of the UBL.
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2.4 Vision, Mission and Objectives of UBL
VISION
To become the bank of choice by transforming the way to do business and developing a truly
unique financial institution that delivers superior growth and financial performance and are
the most recognizable brand in the financial services in Bangladesh.
MISSION
 To deliver service excellence to all customers, both internal and external.
 To take constant challenge of systems, procedures and training to maintain a cohesive
and professional team in order to achieve service excellence.
 To create an enabling environment and embrace a team based culture where people
will excel.
OBJECTIVES
 To maintain a satisfactory deposit mix.
 To grow its credit extension service to the commercials as well as industry.
 To increase its diversifications of loan portfolio and geographical coverage.
 To curb present operating expenses further so as to increase earnings.
 To reduce burden of nonperforming assets.
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2.5.1 Hierarchy Of position
2.5.2 Organ gram of Uttara Bank Ltd at Awlad Hossain Market Branch:
Uttara Bank limited

Awlad Hossain Market Branch
Assistant General Manager
Foreign Exchange
General Banking Department Loan Advance Department Department
Senior Principal Officer Senior Principal Senior Principal

Officer Officer Officer
Advance Officer
Principal Officer Advance Officer Officer
Assistant Officer
Officer
Assistant Officer
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2.6 Different Wings of UBL
Head Office:
> Chairman's Secretariat
> Managing Director's Secretariat
> Board Department
> Share Department
> MIS & Computer Department
Human Resources Division:

> Personnel Department
> Training Institute
> Establishment Department
> Stationary & Records Department
> Transport Department
> Test Key Department
> Disciplinary Department
Marketing Division:
> Business Development Department
> Branches Department
> Engineering Department
> Public Relations Department
Credit Division:
> Credit operation Department
> Recovery Department
> Lease Financing Unit
> C I B Unit
Central Accounts Division:

> Accounts Department
> Statistics Department
> Statistics Department
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> Reconciliation Department
> Expenditure Control Department
Audit and Inspection Division:

> Internal Audit Department
> External Audit Department
International Division:
> Treasury Department
> Dealing Room
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2.7 Business Network of UBL
UBL operates through a network of 220 branches around the country.
2.8 Core Business Units of UBL
 Consumer Banking
 Corporate Banking
 SME banking
 Treasury
2.8.1 Consumer Banking

UBL Consumer Banking deals with the day-to-day financial wants of the consumer clients.
Consumer banking products are designed keeping in mind the financial necessities and
affordability of the clients. The new IT platform of UBL has enabled its Consumer Banking
to offer world class and comprehensive range of financial products and services. These have
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been fashioned in a manner to fulfill the clients' banking needs with dedicated Relationship
Managers who are reaching out to the customers to make sure that the job is done in a
systematic manner within the client‟s time frame. And with Internet banking service,
customers can now access the accounts and services at the click of mouse.
2.8.2 Corporate Banking

Corporate Banking is an integrated specialized area of the Bank, which addresses the diverse
financial needs of Corporate Customers.
2.8.3 SME Banking
Small & Medium Enterprise (SME) remains the engine of growth in the emerging economy.
Uttar Bank limited has been putting its emphasis on small and medium Enterprise financing
in line with the prudential regulation/guidelines of Bangladesh bank. The bank strategy was
to provide working capital term loan to different small & medium scale manufacturers,
traders & service providers that fall under SME sector.
In the year 2010 the bank invested Tk 17,727.0 million in SME sector. The outstanding
balance of the same as on 31.12.2010 stood at Tk 26,366.7 million out of which small
enterprise Tk 13,890.3 million & medium enterprise Tk 12,576.3 million. As a vision to
diversity the credit portfolio as well as to minimize credit risk, the bank is now focusing more
on SME sector
2.8.3 Treasury
Treasury unit is a Core banking unit with its leading-edge technology and steadily growing
volume of activity in the markets, UCBL's treasury unit and currency dealing desks have
consolidated its position as a well-known and well established counterpart in the newly
transformed Free Floating rate, dealing daily with a wide circle of both bank and non-bank
customers all over Bangladesh. Our everyday business revolves around participation in
Money Market & Foreign Exchange Market in a substantial volume.
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2.9 Five year's progression of Uttara Bank Ltd.
Particulars 2013 2012 2011 2010 2009

INCOME STATMENT
Gross income 8,768.2 7,653.3 6,313.5 5,020.2 3,335.1
Gross Expenditure 5,701.3 5,130.5 3,007.9 3,553.0 3,153.2
Gross Profit 3,006.9 2,513.9 2,305.6 1366.2 1,281.9
Pre-tax profit 2,801.9 2,188.9 2,098.1 1133.7 866.8
Post Tax Profit 1,551.9 1,105.2 1,138.5 309.5 238.8
BALANCE SHEET
Authorized Capital 5000.0 3,200.0 1,600.0 1000.0 1,000.0
Paid-up-capital 2,396.0 1,597.3 798.6 399.3 199.7
Reserve Fund & other 6,213.8 3,609.6 2,890.2 2,053.2 1,885.2
reserves
Shareholders’ equity 8,610.8 6,206.9 3,688.8 2,353.5 2,085.2
Deposit 65,868,0 59387.3 50817.0 33,586.3 39,360.2
Advance(Gross) 38,672.7 39,351.3 37,131.3 28,377.3 25,163.9
Investment 18,591.1 22,502.5 11,188.3 13,355.8 9,563.5
Guarantee Business 1,759.1 1,633.5 1,826.9 1,373.3 1,563.1
Export Business 12,986.7 15,096.9 15,039.6 13,783.5 18,133.9
Import Business 29,613.5 29,129.3 31,136.9 25,307.9 22,630.7
Foreign remittance 33,200.7 33,635.3 36,073.2 29,575.3 28,728.1
Fixed Assets 2,798.1 1,088.3 1,065.7 1,013.0 932.1
Total Assets 81,351.8 71,936.0 58,333.3 52,860.3 35,217.0
Loans & Advances 2,678.7 2,832.0 2,633.8 3,530.9 3,783.9
Total off Balance sheet 9,377.6 8,560.5 8,806.9 8,830.6 7,328.5
Exposure
SHARE INFORMATON
Earnings Per Share 6.38 69.13 132.56 102.56 123.59
Market value per Share 1,660.75 1,350.25 3393.75 3,853.75 2,312.25
Price earnings Ratio(time) 25.63 20.96 23.81 37.33 18.56
Book Value Per Share(NAV) 35.93 388.58 337.88 573.73 957.66
after split
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OPERATING
PERFORMANE RATIO
Advance-Deposit Ratio 0.73:1 0.66:1 0.73:1 0.65:1 0.63:1
Total Advance/Class. 5.50% 7.20% 7.09% 12.30% 15.03%
Advance
Income from equity 18.02% 17.80% 30.86% 16.69% 11.93%
Income from Assets 1.91% 1.53% 1.95% 0.77% 0.55%
Other Information
Number Of shareholder 65,037 32,570 27,228 12,367, 5,390
Number Of Branches 211 211 207 207 201
Number of employees 3,262 3,291 3,376 3,376 3,505
2.10 PRODUCT & SERVICES OF UBL
Product and Services
Deposit Scheme Foreign Exchange International Business Loans and

Products Advances
Bank Special Non Resident Foreign Personal Loan
Savings Scheme Currency Deposit Letter of Credit scheme
(SSS) Account (NFCD)
Fixed Term Back to Back Letter Festival Small
Deposit (FDR) Resident Foreign Business Loan
of Credit (BTB L/C)
Currency Deposit
Buying and Selling of
Short Term Account (RFCD) Special House
Deposit (STD) Foreign Exchange Building loan
Foreign Currency
Savings Bank Foreign Demand
Deposit Account Long Term and
Account (SB A/c) Draft Short term
Money Gram financing
Current Deposit
Account (CD A/C) House Building
UAE Exchange loan
Current Deposits
(CD)
Placid Express
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The main goals and objectives of UBL are to manage our business profitability to satisfy our
shareholders and customers. Profit is a product of prudence, judgment, accuracy,
compositeness and business volume. UBL have your assets and liability committee,
management committee, credit committee and other committee who continuous monitors the
indicators for healthy growth of banking business. UBL are aware about natural
consequences of globalization liberalization, privatization, and reforms, foreign investment,
economic policy and infrastructure development. The national agenda have created new
challengers for the banks operating in Bangladesh.
2.11 DEPOSIT PRODUCTS

Uttara Bank Ltd. accepts deposits by the following types of accounts, and pays interest,
except Current Account. The relationship between banker and customer is debtor-creditor
relationship of conventional banks. The depositor is a partner in business with Uttara Bank
Ltd.
2.11.1 UBL savings Account:

 Any Bangladeshi National residing home or abroad may open savings account with
UBL.
 The account may be opened in single/joint name.
 The account holder may nominate his nominee in this account.
 The nominee can get the balance amount without submitting succession certificate
after the death of account holder.
Features:
 Minimum amount : Taka 1,000.00

 Rate of Interest : 3.50%
 Free Cheque-Book facility
 Opportunity to apply for - safe deposit locker facility
 Collect foreign remittance in both T.C. & Taka draft.
 Transfer of fund from one branch to another by
 Demand Draft
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 Mail Transfer
 Telegraphic Transfer
 Transfer of fund on Standing Instruction Arrangement
 Collection of cheques through Clearing House.
 Issuance of Payment Order / Call Deposit.
2.11.2 Current Account:

This type of account is opened by both individuals and business concerns. Frequent
transactions (deposits as well as withdrawal) are allowed in this type of account. A current a/c
holder can draw checks on his account for any amount for any numbers of times in a day as
the balance in his account permits. This account provides no interest. The minimum balance
to be maintained is Tk.2000. No new account can be opened with a check.
2.11.3 UBL Fixed Deposit

FDR may be opened single/joint name for a period of 3, 6, 12 months. UBL offers
attractive/competitive rate of interest in FDR.
Any Bangladeshi national residing home or abroad may open FDR with UBL.
Rate of
SL No. Amount to be deposited Terms of Fixed deposits receipts
Interest
3 months and above but not more than 1
i) For Tk. 10.00 crore and above 15.00%
year
From Tk. 5.00 crore and above 3 months and above but not more than 1
ii) 13.50%
but less than Tk.10.00 crore year
3 months and above but not more than 1
iii) For Taka less than 5.00 crore 12.50%
year
Page | 18
2.11.4 UBL Interesting Account
Get your saving accounting monthly instead of waiting for 6 long months. It is truly
“interesting”- a complete solution for earning interest every month out of a transactional
account. Earn it – just effortlessly.
2.11.5 UBL Monthly income Plan (MIP):

UBL Monthly Income Plan is an income plan which helps customer to earn a monthly fixed
amount on their fixed deposits kept with UBL for a period of 3 years.
All we need to do is keep TK 50,000/- or multiples of it for a period of 3 years. Customer will
earn TK. 356/-(After deduction of Tax) per month on every deposit of TK. 50,000/-, or
TK.525/-(After deduction of Tax) per month on every deposit of TK. 100,000/- for a period
of 3 years. A customer can open any number of MIP of TK 50,000/- or multiples of TK
50,000. Customer can earn money on their fixed deposits. Monthly fixed interests will be
automatically credited to customer's linked CD/SB/HP account on due date.
Page | 19
2.11.6 UBL Monthly Deposit Plan
a. Any adult Bangladeshi National will be eligible to open this account.
b. The period of the scheme will be 5 (five) years and 10 (ten) years term.
c. Monthly installment will be Tk.500/-, 1000/-, 2000/-, 3000/-, 5000/- & 10000/-
d. Monthly installment to be deposited within 10th day of the month. After due date a
penalty of Tk.50/- will be realized from the A/C holder. If the A/C holder fails to
deposit 3(three) consecutive monthly installments, the account will be automatically
closed.
e. No cheque book will be issued against the account.
f. Deposit may be encashed before maturity. But no interest will be paid if encashed before
1(one) year of deposit.
g. Advance will be allowed up to 80% of the deposit after completion of one year
h. Interest will be paid at Savings rate if encashed after 1(one) year of deposit.
i. Advance will be allowed up to 80% of the deposit after completion of one year.
j. Full amount including interest will be paid on maturity.
k. Govt. tax, Surcharge, Source Tax, Levy, Govt. Excise duty will be recovered from the
depositor‟s A/C.
l. Account holder can appoint a nominee against the account.
m. Bank reserves the right to close the account at any time and make amendment / alteration
of the terms & conditions of the scheme without assigning any reason.
2.12 LOANS PRODUCTS

Banking business consists of borrowing and lending. One of the primary functions of
commercial banks is the sanctioning of credit to borrowers without as equate finance. There
can be no growth of maintenance of a stable output. Banks act as financial intermediates
between surplus and deficit economic units. Thus a banker is a dealer in money and credit.
Banks accept deposit from large number of customers and then lend a major portion of
accumulated money to those who wish to borrow. In this process banks secure reasonable
return for the savers, make funds available to the borrowers at a cost and earn a profit after
covering the cost of funds. Banks besides their traditional role of intermediation between
savers and providing an effective payment mechanism have been allowed to diversify into
much new area of better paying business activities.
Page | 20
2.12.1 Uttara Consumer-Credit Scheme:
UBL started Uttaran Consumers Credit Scheme from 1996.UBL offers opportunity of
financial assistance for –
 Motor cycle/car- New or re-conditioned.

 Refrigerator/ Deep Freeze.
 Television/ VCR /VCP/VCD
 Radio/ Two-in-one/ Three – in – one
 Air-Conditioner/ Water Cooler/ Water Pump
 Washing Machine.
 Personal Computer/ UPS/ Printer/ Type writer
 Sewing Machine.
 House hold furniture- Wooden & Steel.
 Cellular Telephone.
 Fax
 Photocopier.
 Electric Fan- Ceiling/ Pedestal/ Table.
 Bi-Cycle
 Dish Antenna.
 Baby Taxi, Tempo/Microbus (For self employed persons)
 Kitchen articles such as Oven, Micro-oven, Toaster, Blender, Pressure Cooker etc.
Page | 21
2.12.2 UBL Executive Loan
UBL Executive Loan is any purpose EMI (equated monthly installment) based credit facility
for salaried executives. No Cash Security No Down payments No Price Quotation/ Invoice
required
2.12.3 UBL fast Loan

Fast loan is a short-term loan facility from UBL. This loan is fully secured against cash
security (UBL FDR, Govt. Sanchaya Patra, ICB Unit certificates etc.). UBL Fast Loan has
convenient repayment period ranging from 12/23/36 EMI's. UBL Fast Loan is priced at
competitive rates and loan is sanctioned within 23 hours of application
2.12.4 Auto Loan
UBL Auto Loan is here to help you purchase your dream car. It's easy and flexible repayment
schedule erase your worries about the burden of a loan. Our Auto loan Scheme will allow you
to avail credit up to 75% of the car value. You need to be a Bangladeshi national between the
age of 25-55, workings in a reputed multinational/ local firm or involved in a reputed
business. The maximum repayment period for UBL Auto Loan is 3 years. You can choose
12, 23, 36 or 38 equated monthly installments (EMI) to repay the loan.
2.12.5 Jibandhara Loan

UBL Jibandhara Loan is an any purpose Lifestyle loan. Purpose might be considered as-
House renovation, Interior Decoration, Marriages in the family, Advance rental payments,
Hospitalization or other emergency medical needs, Trips abroad, Purchase of miscellaneous
household appliances etc. individuals like: Salaried executives & Doctors, architects,
engineers, Chartered Accountant, Consultant and IT professionals can apply for this loan.
Page | 22
2.13 SWOT ANALYSIS OF UTTARA BANK LTD
The acronym for SWOT stands for
 STRENGTH
 WEAKNESS
 OPPURTUNITY
 THREAT
The SWOT analysis comprises of the organization‟s internal strength and weaknesses and
external opportunities and threats. SWOT analysis gives an organization an insight of what
they can do in future and how they can compete with their existing competitors. This tool is
very important to identify the current position of the organization relative to others, who are
playing in the same field and also used in the strategic analysis of the organization. The
following table shows those four key factors for the analysis for Eastern Bank.
STRENGTH WEAKNESS
 Strong corporate identity  Narrow operating span
 Distinct schedule  More Innovative products must be
 Strong employee bonding and offered
belongings  Low remuneration Package
 Efficient Performance  Diversification
 Young enthusiastic Workforce  International Credit Cards
 Empowered Work force  Lack of employees
 Equalization  Training facility
 One-to-one" meeting
 Modem equipment & technology
OPPORTUNITY THREAT
 Distinct operating procedures  Upcoming Banks
 Country wide network  Similar Products are offered by other
 Experienced Managers Banks
 Huge population  Industrial downward trend due to
recession inflation & Unemployment
Page | 23
FINANCIAL PERFORMANCE ANALYSIS
3.1 Introduction
Page | 24
Uttara Bank Ltd. (UBL) is a 1st generation commercial bank with 220 branches across major
cities in Bangladesh and 3262 full time employees on year end 2013. Uttara Bank Ltd. has
made a staggering 37.72 percent growth in Operating Profit in 2013 to BDT 3,066.9 million
largely backed by a quantum growth (96 percent) of Net Interest Income (NII). Further
analysis of Operating Profit 2012 reveals that UBL has been able to arrest the falling trend of
Net Interest Income (NII) successfully in 2012 by managing balance sheet properly. This
improvement once again reinforces the fact that UBL is clearly on the right track of
solidifying its growth potential despite having lower fees income than expected. An usual
growth of investment income (By 10.38 percent over 2011 to the tune of BDT 506.85 million
and a comfortable growth of other operating income (By 26.59 percent over 2011) to the tune
of BDT 365.92 million have outweighed the apparent shrinkage (negative growth) of
Brokerage and Commission Income (By 8.13 percent in 2012) and incidental increase of
operating expenses.
3.2 Deposits
Taka in million
YEAR AMOUNT
2013 65,868.0
2012 59,387.3
2011 50,817.0
2010 33,586.3
2009 39,360.2
Deposits
70,000.00
60,000.00
50,000.00
40,000.00
30,000.00
20,000.00
Page | 25
10,000.00
0.00
Interpretation: The Bank principal source of fund is deposits. The bank deposit stood at
65,868.03 million as on 31 December, 2013 compared to Tk 59,387.3 million in 2012, thus
recording 10.91 percent Growth. Competitive interest rate, attractive deposit product, deposit
mobilization efforts of the bank & confidence reposed by the customers in the Bank
contributed to the notable growth in deposit.
3.3 Collections under Major Deposit Schemes
Now we can focus on the deposit collection under major deposit products at 2012 of the bank
so that we can understand mode of deposit mobilization they use mostly. Here we can also
take a look on the schemes that are popular to the customers.
Types of deposit % of total deposit

Fixed Deposit 66
Saving Deposit 20
Current and Others Deposit 12
Bills payable 2
Interpretation: From the table we can have a picture of deposit portfolio of Uttara Bank Ltd.
Fixed deposit is about 66% means, the bank is able to collect maximum deposit relatively at
long term. Saving deposit is 20% means bank collect lower amount at relatively interest
deposit
From the pie chart we can see about 66% of total deposit are fixed deposit and about 20% are
saving deposit.
Page | 26
3.4 Loans and Advances
Taka in million
YEAR AMOUNT
2013 2,678.7
2012 2,832.0
2011 2,633.8
2010 3,530.9
2009
3,783.9
Loans and Advances
4,000.00
3,500.00
3,000.00
2,500.00
2,000.00
1,500.00
1,000.00
500.00
0.00
Loans and advances of the bank grew strongly by 19.03 percent to 2,678.7 million in 2013.
2013 2012 2011 2010 2009
Loans and advance increased by 19.03 percent indicating strong growth in operational
performance. Uttara bank grew loans and advance by 19.03 percent and loans and advances
of industry grew by 16 percent.
3.5 Sector wise Loans & Advances
The special feature of the credit policy of UBL is to invest on the basis of current and future
growth of particular sectors. Earning profit is not the only motive and objective of the bank‟s
credit policy rather emphasis is given in attaining social good and in creating employment
opportunities.
Page | 27
In order to diversify loan portfolio, every bank engaged itself in investment operations
through special schemes introduced during the years. The following table shows the different
sector wise loan and advance made by the banks.
Portfolio Diversification
Sector Percent
Agriculture 2%
Commercial Lending 58%
Housing 3%
Industrial Lending 11%
Lease Financing 1%
Special Program 10%
Bills Purchased & Discounted 9%
others 6%
The bank continued its efforts to maintain high quality assets. Besides giving emphasis on the
satisfactory business performance of the customers & collateral support, The Bank geared up
loan monitoring & follows up systems through monitoring department to check the loans
from becoming non-performing. The non-performing loans of the bank stood tk2, 678.7
million at the end of 2013 compared to tk 2,832.0 million in 2012.
Page | 28
3.6 Geographic Locations Wise Loans & Advances
Taka in million
Geographic Location AMOUNT
Dhaka Division 25118
Chittagong Division 3833
Sylhet Division 267
Rajshahi Division 367
Khulna Division 307
Dhaka Division
Chittagoan Division
Sylhet Division
Rajshahi Division
Khulna Division
Most of the branches of Uttara Bank Ltd situated in Dhaka city, therefore most of the loans
are disbursed in Dhaka division which is about 80% of total loan.
3.7 Foreign Exchange Business
YEAR IMPORT EXPORT
2013 29,613.5 12,986.7
2012 29129.3 15,096.9
2011 31,136.9 15,039.6
2010 25,307.9 13,783.5
2009 22,630.7 18,133.9
Page | 29
Foreign Exchange
40000
30000
20000
Import
10000
Uttar Bank Ltd has 0during the year performance of import business of the bank was
satisfactory in 2013 import 2013 2012
business stood 2011
at tk 29,613.5 million as 2010
compared to 2009
the volume
of tk 29,123.3 million in 2012. Export business handled by the bank during the year 2013
amounted to tk 12,987.7 million as against tk 15,096.9 million of the preceding year.
Page | 30
3.8 Operating Profit
Taka in million
YEAR AMOUNT
2013 1,551.9
2012 1,105.2
2011 1,138.5
2010 309.5
2009 238.8
Operating Profit
2000
1500
1000
500
The operating profit of the Bank during the year 2013 as tk 1,560.2 million as against tk
0
1,106.9 million in 2012,thus the rate of growth was 30.93%.The bank was able to earn gross
income of tk 8,768.2 million during the year 2013 whereas the gross expenses were tk
2013 2012 2011 2010 2009
5,701.3 million.
Page | 31
3.9 Net Profit (before tax)
Taka in million
YEAR AMOUNT
2013 2,801.9
2012 2,188.9
2011 2,098.1
2010 1,133.7
2009 866.8
operating profit(before tax)

3000
2500
2000
1500
1000
The Bank net profit before tax stood at tk 2,801.9 million as against tk 2,188.9 million of the
500
previous year, thus posting an increase of 28.015.
0
2013 2012 2011 2010 2009
Page | 32
3.10 Income – Expenses – Profit:
Taka in million
YEAR INCOME EXPENSES PROFIT
2013 8,768.2 5,701.3 3,066.9
2012 7,653.3 5,130.5 2,513.9
2011 6,313.5 2,513.9 2,305.6
2010 5,020.2 2,188.9 1,366.2
2009 3,335.1 1,105.2 1,281.9
Income-Expenses-Profit
10000
8000
6000
4000
2000
3.11 Total Assets
0
Taka in million
2013 2012 2011 2010 2009
YEAR AMOUNT
2013 81,351.8
2012 71,936.0
2011 58,333.3
2010 52,860.3
2006 35,217.0
Page | 33
Total Assets
100000
80000
60000
40000
20000
0
The Bank‟s performance in the area was2013
satisfactory. As of 31st December
2012 20112013 total2010
asset of 2009
the bank stood at tk 81,351.8 million with an increase of 13.2 percent as against 2012. The
increase in asset was mainly driven by significant growth of customer deposit which were
used for funding in loans & advance & holding of securities. The increase in assets is
determined by investment, loans & advance & money at call & short notice.
3.12 Market value per share
YEAR AMOUNT IN TAKA
2013 1,660.75
2012 1,350.25
2011 3,393.75
2010 3,853.75
2009 2,312.25
Market Value Per Share

6000
5000
4000
3000
2000
1000
0
2013 2012 2011 2010 2009
Page | 34
Market Value Adds (MAV) is the amount derived from the different between market
capitalization of the share outstanding in the market it‟s the indication of progressive market
growth as ell as financial strength which the company possesses. The Bank‟s Market value
per share decreased during the year by tk 1,660.75 and stood at tk. 2,312.25 million as at 31
December 2009.
Page | 35
4.1 RATIO ANALYSIS
Ratio Analysis expresses the relationship among selected items of financial statement data. A
ratio expresses the mathematical relationship between one quantity and another. The
relationship is expressed in terms of a percentage, a rate, or a simple proportion.
4.2 Operating income ratio
YEAR RATIO
2013 38.23
2012 39.80
2011 35.71
2010 31.79
2009 35.12
Operating income Ratio

50
40
30
20
10
Operating income ratio decreased during the year by 1.56 % and stood at 39.80 % as at 31
December 2013. 0
2013 2012 2011 2010 2009
Page | 36
4.3 Net income ratio (before tax)
YEAR RATIO
2013 38.13
2012 37.97
2011 33.70
2010 33.53
2009 30.12
Net income ratio decreased during the year by 0.2 % and stood at 13 % as at 31 December
2013.
net income ratio
50
40
30
20
10
0 ratio (ROA)
4.4 Return on assets
2013 2012 2011 2010 2009
YEAR RATIO
2013 1.91%
2012 1.53%
2011 1.95%
2010 0.77%
2009 0.55%
Page | 37
Divident per share
2.5
2
1.5
1
0.5
0 (ROA) decreased during the year by 0.55 % and stood at 1.07 % as at
Return on assets ratio
31 December 2011. 2013 2012 2011 2010 2009
4.5 Return on equity (ROE)
YEAR RATIO
2013 15.93%
2012 17.63%
2011 18.82%
2010 16.22%
2009 17.63%
Return On equity
20
19
18
17
16
15
14
2013 2012 2011 2010 2009
Return on equity decreased during the year by 15.93% and stood at 17.63% as at 31
December 2013.
Page | 38
4.6 Dividend per share
YEAR AMOUNT IN TAKA
2013 31
2012 28
2011 26
2010 25
2009 20
Dividend per share

35
30
25
20
15
10 decreased during the year by Tk-31 and stood at Tk-20 as at 31 December
Dividend per share
2012. 5
0
4.7 Earnings per share
2013 2012 2011 2010 2009
YEAR AMOUNT IN TAKA
2013 63.77
2012 69.19
2011 66.00
2010 61.98
2009 56.50
Page | 39
Earning per share
80
70
60
50
40
30
20
10
Earning per 0share decreased during the year by Tk 69.19 and stood at Tk-63.77 as at 31
December 2013. 2013 2012 2011 2010 2009
4.8 Capital adequacy ratio
YEAR RATIO
2013 16.90
2012 16.50
2011 18.36
2010 19.95
2009 17.65
capital adequacy ratio

25
20
15
10
5
Capital adequacy ratio increased during the year by 0.3 % and stood at 13.30 % as at 31
December 2013. 0
2013 2012 2011 2010 2009
Page | 40
4.9 Net Interest Margin Ratio
YEAR PERCENTAGE
2013 3.33%
2012 2.11%
2011 2.81%
2010 3.26%
2009 2.37%
Intersest Margin Ratio
4
3.5
3
2.5
2
1.5
1
0.5
0
2013 2012 2011 2010 2009
Net interest margin increased during the year by 1.23 % and stood at 3.33 % as at 31
December 2013.
4.10 Debt to total assets ratio

The Debt to total assets ratio measures the percentage of the total assets provided by
creditors. It is computed by dividing total debt by total assets. This ratio indicates the
company‟s degree of leverage.
YEAR RATIO
2013 1.91
2012 1.53
2011 1.95
2010 0.77
2009 0.55
Page | 41
Debt to total Assets
2.5
2
1.5
1
0.5
Debt to total assets ratio remain same during the year and stood at 91 % as at 31 December
0
2013.
2013 2012 2011 2010 2009
4.11 Debt-equity Ratio
YEAR RATIO
2013 18.02
2012 17.8
2011 30.86
2010 16.69
2009 11.93
Debt-Equity Ratio
30
25
20
15
10
0
2013 2012 2011 2010 2009
Debt-equity ratio increased during the year by 0.62 % and stood at 10.36 % as at 31
December 2010.
Page | 42
COMPERATIVE ANALYSIS
Page | 43
5.1 INTRODUCTION
Make comparison anything with other requires extensive & significant knowledge about the
subject matter. In this chapter I critically analyze the comparisons the performance at
different area with other two leading banks in Bangladesh. Here BRAC Bank & The City
Bank Limited is two companies have the prominent position in their own position in banking
sector. Both are practices various tools & techniques in their management style which is the
major factor for their success.
5.2 Number of Branch
YEAR 2013 2012 2011 2010 2009
UBL 220 217 207 207 201
BRAC 100 95 90 87 87
CBL 77 77 78 83 83
One of the main lacks of Uttara Bank is absence of extant branch network. Now, UBL has
only 28 branches only in Dhaka and some big city. On the other hand city bank has large
branch network which is the strength of the bank.
5.3 Number of Employees

Uttara bank has the larger employee than Brac and city Bank.
YEAR 2013 2012 2011 2010 2009
UBL 3,262 3291 3,376 3,376 3,505
BRAC 2,950 2,500 2370 2356 2356
CBL 1803 1829 1989 1991 2035
Page | 44
5.4 Deposit
Amount in Million
YEAR 2013 2012 2011 2010 2009
UBL 65,868.0 59,387.0 50,817.0 33,586.3 39,360.2
BRAC 58,387 32,537 37.368 35,002 25,682
CBL 35033 30,637 32,881 30,539 26,325
Deposit Mobilization In year 2009-2013
If we separately see to the deposit mobilization data of UBL with some important
contemporary banks then it will be seen that the UBL position is not good compare to CBL
and BRAC.
Page | 45
5.5 Credit Creation
Amount in Million
YEAR 2013 2012 2011 2010 2009
UBL 60,281 52,022 38,321 23,632 13,163
BRAC 59,356 39,892 32,137 28,178 13,156
CBL 33,320 26,788 30789 22,782 12,159
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
The credit creation position of is relatively good but UBL is also good in progress and City
2013 2012 2011 2010 2009
Bank position is not good enough.
5.6 Import Businesses

Amount in Million
YEAR 2013 2012 2011 2010 2009
UBL 29,613.5 29,129.3 31,136.9 25,307.9 26,630.7
BRAC 27,153 20,139 28,156 19,169 22,325
CBL 26,169 19,153 22,569 21,869 17,185
Page | 46
Import Business In year 2009-2013
40,000
30,000
20,000
10,000
0
2013 2012 2011 2010 2009
The market share of UBL in Export Business is on top. Though the growth rate of Uttara
Bank is good. On the other hand, the position of CBL is in declining situation.
5.7 Export Businesses
Amount in Million
YEAR 2013 2012 2011 2010 2009
UBL 12,986.7 15,096.9 15,039.6 13,783.5 18,133.9
BRAC 9,357,7 13511 13,873 12,771 6178
CBL 10,198 11,218 13,211 13151 12,198
Export
20000
15000
10000
5000
Business
0
2013 2012 2011 2010
Page | 47
In the above table it shows that the market share of Uttara bank in Export Business is highest
and the CBL and BRAC Bank also require gearing up.
5.8 Net profit after tax

Amount in Million
YEAR 2013 2012 2011 2010 2009
UBL 2,801.9 2,188.9 2,098.1 1,133.7 866.8
BRAC 1,550.3 1,320.5 1,750 1,800 887
CBL 1,220 1,100 1,550 1,350 598
3000
2500
2000
1500
1000
500
0
In the 2013 the growth of the2013 2012
net profit is negative for UBL. This is2011
alarming situation 2010
for the 20
bank. The growth of BRAC income increase in a steady rate but it is opposite situation in
CBL.
Page | 48
5.9 Profit Growths (%)
YEAR 2013 2012 2011 2010 2009
UBL 70.02 36.05 26.03 33.03 37.06
35.22
BRAC 27.31 33.33 27.21 13.83
CBL 16.03 32.92 27.56 32.11 23.15
80
60
40
20
The variance of0UBL is high so the risk is high. On the other hand, variance of CBL is low
thus the risk is low. 2013 2012 2011 2010 2009
5.10 Capital Adequacy Ratio
YEAR 2013 2012 2011 2010 2009
UBL 12.71% 18.76% 13.02% 13.13% 8.20%
BRAC 11.12% 6.90% 11.50% 13.00% 7.83%
9.03%
CBL 12.82% 9.63% 9.21% 12.61%
Page | 49
1500.00%
1000.00%
500.00%
0.00%
In this case of capital adequacy, Uttara Bank is most efficient that means depositors of UBL
2013BRAC is2012
bear less risk than CBL and BRAC. the 2nd most2011
efficient and 2010
increasing 2009
consistently and other Banks have erratic nature.
5.11 Earnings per Share

Amount in Taka
YEAR 2013 2012 2011 2010 2009
UBL 63.77 69.19 66.00 61.98 56.50
BRAC 100.12 56.88 54.78 80.51 90.06
CBL 115.35 131.13 89.72 95.06 98.96
Earnings Per share
150
100 UB
BR
50
Among three banks earning per share (EPS) of Uttara Bank is most stable then CBL and CB
0
BRAC. The variance of CBL is high so the risk is high. On the other hand, variance of UBL
2013 2012 2011 2010 2009
and BRAC is low thus risk is low.
Page | 50
5.12 Operating Efficiency (O/E)
YEAR 2013 2012 2011 2010 2009
UBL 5.56 1.55 1.37 1.53 2.6
BRAC 3.25 1.36 1.33 1.51 1.5
CBL 3.00 1.53 1.39 1.25 2.00
In this case Uttara Bank is most efficient. BRAC is the 2nd most efficient and increasing
0
2013 2012 2011 2010 2009
5.13 Return on Assets (ROA)
YEAR 2013 2012 2011 2010 2009
UBL 1.91% 1.53% 1.95% 0.77% 0.55%
BRAC 1.00% 0.86% 1.66% 1.90% 1.09%
CBL 1.09% 1.75% 0.58% 0.71% 0.75%
250.00%
200.00%
150.00%
100.00%
50.00%
0.00%
2013 2012 2011 2010
Page | 51 2009
Return on assets ratio position of Uttara Bank is almost stable but CBL and BRAC position
are not good enough.
5.14 Return on Equity (ROE)
YEAR 2013 2012 2011 2010 2009
UBL 18.63% 19.17% 16.07% 11.93% 18.33%
BRAC 12.87% 17.63% 17.98% 19.90% 17.06
CBL 13.33% 12.05% 10.69% 32.71% 33.13%
Return on Equity (ROE)
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
In this case BRAC is most efficient. UBL is the 2nd most efficient and increasing
0.00%
2013 2012 2011 2010 2
Page | 52
5.15 Deposit Advance Ratio
YEAR 2013 2012 2011 2010 2009
UBL 54.79% 64.17% 68.56% 53.56% 62.67
BRAC 1.27 1.18 1.12 1.15 1.17
CBL 1.27 1.28 1.33 1.51 1.31
2
1.5
1
0.5
The above table 0shows that CBL is highly prudent in asset management whereas UBL and
BRAC can gear up in asset2013
management thereby
2012help achieve profit
2011target. 2010 2009
5.16 Classified of total loans
YEAR 2013 2012 2011 2010 2009
UBL 1,350 2,832.0 2,633.8 3,530.9 3,783.9
BRAC 1,580 3,120 2,500 3,125 3,900
CBL 2,985 3,380 2,800 3,365 3,100
5,000.00
4,000.00
UBL
3,000.00
BRAC
2,000.00
1,000.00 CBL
0.00
2013 2012 2011 2010 2009
Page | 53
Findings, Recommendation
&
Conclusion
Page | 54
6.1 FINDINGS
1. Operating income ratio decreased during the year by 1.56 % and stood at 39.80 % as at
31 December 2013, which is lower than previous year.
2. Return on assets ratio (ROA) decreased during the year by 0.55 % and stood at 1.07 %
as at 31 December 2011.
3. UBL‟s gross profit margin is decreasing day by day.
4. Net working capital has gradually decreasing and in 2013 it was negative, which was
not good for the bank.
5. Return on equity decreased during the year by 15.93% and stood at 17.63% as at 31
December 2013.
6. Dividend per share decreased during the year by Tk-31 and stood at Tk-20 as at 31
December 2012.
7. Earnings per share decreased during the year by Tk 69.19 and stood at Tk-63.77 as at
31 December 2013.
8. Capital adequacy ratio increased during the year by 0.3 % and stood at 13.30 % as at
31 December 2013.
9. Net interest margin increased during the year by 1.23 % and stood at 3.33 % as at 31
December 2013.
10. Debt ratio of UBL is in satisfactory level as it is in trend.
11. The deposit mobilization data position of UBL is not good compare to CBL and
BRAC.
12. The variance of UBL is high so the risk is high.
13. The capital adequacy of UBL is most efficient that means depositors of UBL bear less
risk than BRAC and CBL.
14. Classified total loans of UBL are higher than other bank that is alarming for the bank.
Page | 55
6.2 RECOMMENDATIONS
It is not unexpected to have problems in any organization. There must be problems to operate
an organization. But there must be remedies to follow. The following recommendations can
be suggested:
1. As the operating income ratio decreased at 2013 compared to the previous year, bank
should concentrate on it to increase.
2. Return on assets ratio (ROA) also decreased in 2013 which is negative for the bank.
Bank should take necessary steps to increase ratio.
3. UBL‟s gross profit margin is decreasing day by day, so from that point of view UBL
was not utilized its resources in generating profit and shareholder value, so they
should utilize their resources properly to generate profit.
4. UBL should take necessary steps to manage working capital properly.
5. UBL‟s dividend per share in 2013 is lower than previous years. So the bank should
concentrate on that.
6. UBL should take necessary steps to increase EPS.
7. A classified total loan of UBL is high, so it should be minimized.
8. The variance of UBL is high so the risk is high. On the other hand, variance of CBL is
low thus the risk is low. So UBL should keep low variance to minimize risk.
Page | 56
6.3 CONCLUTION
It is widely accepted that credit is a phenomenon of economic development and the banking
system is a vital agent which plays a crucial role in this process. As the economic
development is rapid and meaningful proper utilization of bank funds is required. Financial
intermediaries, particularly banks have a very important role in rising of the financial
resources because of their capacity to tap resources from a wider spectrum of people and
diversified nature of their operations. Banks ability to make a positive contribution in igniting
the process growth depends to a great extent on the way the banking funds are invested.
Uttara Bank places utmost importance on managing credit risk. The whole process includes
management of Credit Risk, Foreign Exchange Risk, Prevention of money Laundering, Asset
liability Management, Internal control and Compliance. The 10 years success story though
helped the bank to attain a leading role but to remain unrivalled among new generation banks,
the bank must face new challenges. Overall, the bank must make a positive attempt to be
more outward looking in their goals and aware of what is happening. They must also
emphasize on the domestic scenario more closely and analyze any certain trends and
strategies of their competitors. The bank must accept any failures and think of them as an
objective to pursue future goals instead of blaming such failures on other factors. I hope in
spite of my all limitations, this experience of sharing works with such working environment
will help me a lot in my professional life.
Bibliography:
1. Annual Reports (2009, 2010, 2011, 2012 & 2013) - Uttar Bank Ltd
2. Annual Report (2013) The City Bank Ltd
3. Annual Report (2013) Brac Bank Ltd
4. Financial Management by Prof. Shajahan Mina
5 Financial Institution Management, A Modern Perspective by Anthony Saunders
6. Brochures published by Uttara Bank Ltd.
7. Data provided by branch
8. Class Notes
9. www.bangladeshbank.org
10. www.uttarabank-bd.com
Page | 57

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Daffodil International University

Financial Performance Analysis Of

RIAJUL ISLAM, MD.

Program: MBA (Major in Finance)

UTTARA BANK LIMITED

Date of Submission: 18th September, 2014

Daffodil International University

18th September, 2014

Mr. Mahbub Parvez

Subject: Submission of Internship Report on “Financial Performance Analysis of Uttara

Md. Riajul Islam

Finally, I am very much appreciative to almighty Allah again.

4.1 Introduction of Ratio Analysis 36

1.3 OBJECTIVE OF THE STUDY

The following methodology has been followed to come to a successful conclusion.

Sources of Information & Data

The “Primary Sources” are as follows –

The “Secondary Sources” of data and information are –

Method of data analysis:

1.5 LIMITATION OF THE STUDY

2.2 Background of Uttara Bank Ltd.

2.3 Business Philosophy of Uttar Bank Ltd

Uttara Bank limited

Assistant General Manager

Senior Principal Officer Senior Principal Senior Principal

Human Resources Division:

Central Accounts Division:

Audit and Inspection Division:

2.8 Core Business Units of UBL

2.8.1 Consumer Banking

2.8.2 Corporate Banking

2.8.3 SME Banking

Particulars 2013 2012 2011 2010 2009

2.10 PRODUCT & SERVICES OF UBL

Product and Services

Deposit Scheme Foreign Exchange International Business Loans and

2.11 DEPOSIT PRODUCTS

2.11.1 UBL savings Account:

 Minimum amount : Taka 1,000.00

2.11.2 Current Account:

2.11.3 UBL Fixed Deposit

2.11.5 UBL Monthly income Plan (MIP):

2.12 LOANS PRODUCTS

 Motor cycle/car- New or re-conditioned.

2.12.3 UBL fast Loan

2.12.4 Auto Loan

2.12.5 Jibandhara Loan

3.3 Collections under Major Deposit Schemes

Types of deposit % of total deposit

Loans and Advances

3.5 Sector wise Loans & Advances

Commercial Lending 58%

Industrial Lending 11%

Special Program 10%

Bills Purchased & Discounted 9%

Geographic Location AMOUNT

Dhaka Division 25118

Chittagong Division 3833

Sylhet Division 267

Rajshahi Division 367

Khulna Division 307

3.7 Foreign Exchange Business

YEAR IMPORT EXPORT

2013 29,613.5 12,986.7